St. Paul Teachers' Retirement Fund Association

The St. Paul Teachers’ Retirement Fund Association (SPTRFA) provides defined benefit pension benefits to public school teachers in the City of St. Paul, Minnesota. Managing approximately $2 billion in assets, SPTRFA is one of the few remaining city-level teacher pension systems in the United States. The fund operates independently from the statewide Teachers Retirement Association and is governed by its own Board of Trustees.

Investment Strategy

SPTRFA maintains a diversified investment portfolio across domestic and international equities, fixed income, real estate, and alternative investments. The Board of Trustees sets asset allocation targets based on actuarial studies and capital market assumptions, with the objective of generating returns sufficient to meet long-term pension obligations. The fund utilizes external investment managers across asset classes, with oversight from the board and external investment consultants. SPTRFA’s investment approach emphasizes long-term return generation, risk management, and cost-effective implementation appropriate for the fund’s scale.

Private Markets Approach

SPTRFA allocates approximately 8% of its portfolio to alternative investments, including private equity and real estate. The private equity program includes commitments to diversified buyout and growth equity funds managed by established institutional managers. Given the fund’s moderate scale, the alternatives program is focused on a select number of manager relationships that provide exposure to private markets return premiums. The real estate allocation includes investments in commingled funds spanning core and value-add strategies. SPTRFA approaches its private markets program with attention to diversification across vintage years, fee management, and liquidity considerations. The board evaluates alternative investment opportunities through a deliberate due diligence process supported by its investment consultant.